Recession investing, it appears, will soon be a thing of the past. The UK economy is expected to grow by 14.3{429fc2506e610357e12b2a5665db82631200a2e00b3a1d8839077d76f18e2e8b} in the July–September quarter, after the disastrous contraction of 20.4{429fc2506e610357e12b2a5665db82631200a2e00b3a1d8839077d76f18e2e8b} in the last one. This prediction is based on a recent Financial Times report, which draws upon an HM Treasury compilation of forecasts by City economists.
This is hardly surprising. June numbers had already shown 8.7{429fc2506e610357e12b2a5665db82631200a2e00b3a1d8839077d76f18e2e8b} growth as the Covid-19-driven lockdown started ebbing. By extension, economic activity is only expected to pick up speed as more businesses restart. The Bank of England has already predicted a V-shaped recovery. While all sectors will benefit from this, I reckon that consumption-led stocks will be the best ones to buy in this time of recession investing.
Recession investing in three categories
There are three kinds of investments that I’m looking at in particular. One, non-food retail stocks. While FTSE 100 grocers … Read more